Ocean Outdoor UK Ltd v Hammersmith and Fulham LBC
[2019] EWCA Civ 1642
Ratio Decidendi
A services concession contract (where the operator takes the operating risk) is not a public services contract but may still be subject to lighter-touch procurement requirements. The key question is whether the operator takes the demand risk.
Ffeithiau
Ocean Outdoor challenged the council's award of an advertising concession to a competitor. The question was whether the contract was a services concession (subject to lighter rules) or a services contract (subject to full procurement).
Crynodeb o'r dyfarniad
The Court of Appeal held this was a services concession. The operator took the risk of demand for advertising space. The council had conducted an appropriate process for a concession contract.
Dyfyniadau allweddol
"The essential characteristic of a concession is that the operator takes the operating risk. If the risk remains with the contracting authority, it is a services contract."
— Coulson LJ
Triniaeth ddilynol
Clarifies the distinction between service contracts and concessions.